Advertised rental price

[NSWinvester]

I've had offers higher than the price advertised, of course as a landlord I would want the highest possible price.

Can I actually change the rental price once advertised in the advertisement? and also now that offers have been higher than the original , can I still negotiate with the prospect tenant for a higher rental price?

Thank you

 

[Sez]

Ask your PM as it depends on your states law. In VIC we don't accept higher offers as it can be considered 'auctioning' the property or taking a bribe for favour by accepting the higher rent.

 

[DaveM]

My understanding of the NSW rules is that you can offer whatever you want (eg advertised at $300pw, tenant can offer $330 or whatever to attempt to secure it).

What you cant do is advertise at $300pw, accept applications at that, and then tell tenants they need to offer more to secure it or request more than the advertised price on the application.

 

[gottabespotless]

Great! Your IP is obviously in high demand but if prospective tenants are willing to pay more rent for your property to secure it, then I would be having a big talk to your PM and asking why they don't know the true rental value of your IP. Surely they know that the more demand for a rental like yours should push the price up. Why was it advertised at such a low price in the first price? I'd be asking questions.

 

[Brett IP]

I cant see why you couldnt change the advertisement, nothing is signed or accepted yet.

And completely agree with the prior post, you should think your expert PM that your paying good money for should know the market. Sounds like you could have got even more than your being offered.

 

[Sez]

I would query that to a certain degree. I start the advertising of properties I manage at approx. $10 over the market, often getting a good tenant at this price and occasionally having to drop the price slightly without any great loss to the landlord and still getting a quick tenant.

Often the people who are offering more money than the advertised price are people who can not get another rental due to a poor history and they are hoping that the thought of more money will get them over the line. It may not be that your property is under-priced, it may be that it is just right and these applicants are just not!!

Tread carefully with this one

 

[Marti]

Interesting question as we have a rental property in the Karratha WA, where the rental demand is high. The lease came to an end during June and was advertised by the managing agent. Within a couple of days we had an offer at the asking terms from a company in based in Perth.

Unfortunately we were a way for a few days and when we accepted their offer they had found another property. We then had an offer from a company based in Queensland who wanted to house four male employees. While we did not mind too much we did ask the agent as the house would get more wear and tear if they could ask the tenant to slightly increase their offer.

The response was a firm no based in their view on moral and legal reasons. Our option was to decline their offer and readvertise. So what did we do?!

 

[NSWinvester]

Great! Your IP is obviously in high demand but if prospective tenants are willing to pay more rent for your property to secure it, then I would be having a big talk to your PM and asking why they don't know the true rental value of your IP. Surely they know that the more demand for a rental like yours should push the price up. Why was it advertised at such a low price in the first price? I'd be asking questions.

This property is self managed, so no one to blame except for me. I prefer it that way anyways hahaha

The recent tenants had been living at my property for a couple of years at $420. So I did my research by looking at websites such as realestate.com and domain.com and deemed it at that. The property been rented out for a couple of years, so I kind of lost track/feel and demand in the area.

I had a couple offers for $450 and even one for $500 (really desperate person), in the end I choose the best tenant at $460. The property was in high demand, knowing this now in the future the advertised rental price will be higher.

 

[Sez]

Well done! Just remember in the future - markets change!!!